Elixir advances Warkon Pilot with feasibility and engineering milestones
Elixir Energy (ASX: EXR) has progressed feasibility studies and Concept Select works on its northwestern Taroom Trough gas and condensate production pilot, now referred to as the Warkon Pilot. The update marks a step in defining the pathway from appraisal to commercial production.
Two developments anchor the announcement. APT Management Services Pty Ltd, a wholly owned subsidiary of APA Group (ASX: APA), has completed feasibility work on the custody transfer and pipeline route to the Wallumbilla Gas Hub (WGH). Separately, Simpliphi Pty Ltd has been appointed to complete the first phase of Concept Select and engineering works on the pilot’s upstream plant.
Together, the studies provide a practical framework for converting Elixir’s resource position into potential revenue-generating assets, though no reserves have been booked at this stage.
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The Wallumbilla pipeline pathway — key feasibility findings
APT Management Services completed its work under the Early Works Agreement (EWA), announced on 10 April 2026. The feasibility study identified the best economics via a direct pipeline running northeast to the WGH, incorporating a custody transfer point covering gas chromatography, metering station and infield compression.
The WGH functions as the exchange for wholesale gas trading and a critical interconnection point for nine major pipelines in Queensland. These pipelines link gas supply from the Surat and Bowen Basins to domestic markets and LNG export facilities.
The feasibility study assessed a designed capacity of 40 TJ/d, capable of operating between 5 and 150 TJ/d. All tariff and capacity figures below are preliminary Class 5 estimates carrying an accuracy range of -30%/+50%.
| Parameter | Detail |
|---|---|
| Designed capacity | 40 TJ/d (operable 5–150 TJ/d) |
| Indicative tariff (150 TJ/d throughput) | $0.35/GJ |
| Indicative tariff (40 TJ/d throughput) | $1.32/GJ |
| Pipeline route options | Two routes, 52 km and 53 km |
| Tariff estimate basis | 15-year tariff, Class 5 (-30%/+50%) |
The preliminary estimates indicate capacity charges between $0.35/GJ and $1.32/GJ depending on throughput between 150 and 40 TJ/d respectively. According to Elixir, these figures demonstrate the proximity advantage of its Taroom Trough assets and the minimal capital required to connect into the east coast domestic and LNG gas markets.
APA has provided two viable pipeline routes of similar length, 52 km and 53 km, offering optionality to optimise land access and environmental approvals during the detailed design phases.
Upstream plant scope and Simpliphi’s engineering role
Before reaching pipeline specification, the gas requires some minor upstream conditioning at surface. This includes condensate drop out, with trucking offload for sale, dehydration and temperature management.
Elixir has engaged Simpliphi to complete the Concept Select work on the design and capacity of this upstream plant, matching the potential APA infrastructure. According to Elixir, Simpliphi’s consultants have very recent and direct experience in the design and construction of similar plant.
Simpliphi’s deliverables include:
- Concept design and engineering
- Project risk assessment
- Preliminary cost estimate
- Project execution plan
Simpliphi’s work is expected to complete in the current quarter.
Why proximity to Wallumbilla matters — investor context
The Taroom Trough is described by Elixir as a multi-TCF Basin Centred Gas Play. In simple terms, this refers to a large accumulation of gas held within a low-permeability rock formation across the centre of a sedimentary basin, requiring appraisal and development work to bring the resource to surface. Its value proposition rests heavily on infrastructure access.
Proximity to established infrastructure, including the WGH, multiple gas pipelines, LNG export facilities and operating refineries, has the potential to lower development costs and capital hurdles. Between the plant, custody transfer and pipeline, Elixir noted substantial scope to collaborate with Taroom Trough neighbours on multi-user and shared infrastructure.
The cost benefits are illustrated by the feasibility study’s capacity charges, which fall 74% upon full utilisation from 40 to 150 TJ/d. Elixir intends to explore these collaborative opportunities with adjacent operators and to raise them with the Queensland Government’s Taroom Trough Development Forum.
Stuart Nicholls, Managing Director & Chief Executive Officer
“Importantly, Elixir’s proximity to the Wallumbilla Gas Hub provides a significant competitive advantage. Access to existing infrastructure has the potential to lower development costs and capital hurdles, supporting a faster and more efficient pathway to commercial gas sales.”
Resource position and next steps
Elixir Energy is the largest acreage holder in the Taroom Trough in Queensland’s Bowen Basin. The company is aiming to appraise its approximately 3.5 TCF of independently certified 2C Contingent Gas Resources, which borders Shell’s primary area of investment within the Taroom Trough.
The upstream plant and APA infrastructure studies provide critical inputs into the evaluation of commercial production for the purposes of future Reserves bookings. Elixir intends to interrogate these after the second phase of flow testing at the Lorelle-3H well, scheduled to commence on 1 October 2026.
As further developments on the Warkon Pilot occur, Elixir will provide updates in due course.
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